What impact does the lack of funds from the Centre have on the states in India
Concerns arise about whether states are receiving the funds they are entitled to from the Centre.
- Unequal development: States that do not receive sufficient funds from the Centre may face challenges in implementing development projects, leading to uneven growth across different regions.
- Lower quality of public services: Inadequate funds can result in a lack of investment in essential sectors like healthcare, education, and infrastructure, affecting the quality of public services provided to residents.
- Increased dependence on borrowed funds: States may have to rely more on borrowing to fulfill their financial requirements, leading to higher debt levels and interest payments in the long run.
- Impact on governance: Insufficient funds can hamper the ability of states to efficiently govern and meet the needs of their populations, leading to dissatisfaction among citizens.
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a year ago